KUALA LUMPUR – In Budget 2022, the Federation of Malaysian Business Associations (FMBA) is hoping the government will waive the sales and services tax (SST) for the food and beverage and tourism industries.
Speaking to The Vibes, FMBA vice-chairman Raymond Woo said the waiver can be extended to entertainment tax imposed on cinemas and theme parks.
“With a tax waiver in 2022, customers will enjoy the benefits as the purchase of services will be cheaper. Businesses will then serve as a collection body on behalf of the government.”
He added that new funds in the form of loans or equity participation will help businesses rebuild after losses incurred throughout the pandemic.
FMBA represents 262 business associations and chambers of commerce comprising 950,000 companies.
Its members are appealing for a discount on utility bills, the establishment of relief funds with zero or reduced interests, and a special soft loan to purchase automatic equipment such as combi ovens and dishwashers.
Meanwhile, Malaysian Muslim Restaurant Owners’ Association (Presma) president Datuk Jawahar Ali Taib Khan is looking forward to an acknowledgement of the industry requirements, saying that measures must be taken to guide the food and beverage industry back to normalcy.
These measures will boost the food and beverage industry and aid us in getting back on track. We are not asking for anything free; we just need an injection of funds to boost the industry.”
He said aside from the moratorium extension implemented this year for small businesses, the current budget is not much different from those of previous years.
“Even then, the moratorium was only obtained after constant pressure from industry players.”
The Restaurant and Bistro Owners Association (PPRB) also expects the national budget to ensure that small and medium enterprises have easier access to capital.
“Many of our members were not able to secure assistance nor receive a reasonable response as to why their application was not approved,” PPRB vice-president Jeremy Lim said.
He added that since the food and beverage industry is not typically the beneficiary of any direct financial aid, it enjoys spillover effects from provisions given to other related industries, such as excise taxes on tobacco and alcohol.
“Due to the Covid-19 pandemic, it has been an extremely challenging year for many, and our industry is no exception. We are already withering. Help us recover, and in turn, many livelihoods will be saved.”
Benny Bedi, a local business owner in Kuala Lumpur, has high expectations for the government to address the welfare of food and beverage business owners.
“Considering the loss suffered by businesses because of restrictions throughout the pandemic, the 6% SST should be scrapped or suspended for at least two years.
“The industry is faced with an acute shortage of workers that makes it difficult to cope with the increase in demand.
“During the movement control order, many workers were retrenched since only takeaways were allowed. The work permits of our foreign workers have also long expired.”
On the levy for foreign workers, Benny suggested that employers be given a one-year rebate of 25% and for the levy to be coordinated across sectors.
He expressed frustration over the lack of government action, saying the government is aware of the struggles faced by business owners but seems adamant on “not accepting the reality of the situation”.
“The government does not want to listen and is always in denial when it comes to our industry.
Aren’t we Malaysian citizens, part of Keluarga Malaysia? We pay our taxes, follow all the rules set by the government, and yet, we are still being victimised,” he told The Vibes.
He added that restaurants are not a standalone industry as the survival of various suppliers are dependent on the continued operation of restaurants.
“Provisions of supplies such as poultry, seafood, and vegetables will be impacted if restaurants are unable to operate at a regular capacity. If restaurants close down, the industry chain will be affected.”
Budget 2022 is scheduled to be tabled in Parliament at 4pm today by Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz. – The Vibes, October 29, 2021
